Study On Differentiation Strategy Of Reading APP

The popularity of smart phones and the development of mobile application software are driving the development of the mobile reading industry.However,the industry also ushered in a variety of problems,these problems are more fully exposed in the book APP industry.First,the growth rate of the number of users of the reading APP industry has shown a declining trend.Second,other digital products on the market as a substitute for reading APP have a strong competitiveness;Finally,the homogeneity of reading APP products is relatively serious.In this situation,book APP operators need to adopt a suitable strategy.According to Porter's strategic theory,the company's product strategy has three strategies:total cost leadership strategy,differentiation strategy,and specialization strategy.Which strategy is specifically chosen needs to analyze the strategic environment and corporate resources.The strategic environment includes the macro environment,industry basic characteristics,and competition structure.Using the PEST model to analyze the macro environment,it can be concluded that,first of all,capital will continue to enter the book APP industry;secondly,the business model will be an important competitive area for the industry;once again,alternative products such as games and videos will become important competitors.Finally,Al technology and VR technology will bring about industry revolution.The basic situation of the book APP industry is that,first of all,the type of competition in the book APP market is monopolistic competition;secondly,the industry economic cycle of book APP is a growth type;finally,the industry life cycle of book APP is a mature period.Using the Porter Five Forces model to analyze the competitive structure of the industry,it can be concluded that the potential entrants are less competitive;the competition among the enterprises with high market shares is fierce;the competitiveness of the alternative products is strong;the bargaining power of the APP development company and the author of the bestseller is Strong;book APP users do not have direct bargaining power.After the above analysis,it can be seen that market leaders and challengers in the industry should regard substitutes as main competition objects,and market followers and fill-outs should achieve differentiation from other products in the industry.WeChat Reading APP is a market follower in the industry.Some principles of its differentiation strategy are worth learning from.Through analysis,it can be seen that the differential strategy of WeChat Reading APP includes these two principles:differentiation strategies should correspond to the company's advantageous resources;various differentiating strategies should work together.In order to further demonstrate the principles of implementing a reading APP differentiation strategy,a case study was conducted on the MIGU Reading APP.The differentiation strategy of MIGU Reading APP also implements a certain concept internally,that is,it is closely related to other business activities of China Mobile Corporation.However,it is not as clear as the "Reading+Social" concept of the WeChat Reading APP.